MIRA INFORM REPORT

Report Date :

02.01.2013

IDENTIFICATION DETAILS

Name :	SULZER INDIA LIMITED
Registered Office :	Gat No. 304, At Kondhapuri, Taluka Shirur, Kondhapuri – 412209, Maharashtra
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	11.04.1988
Com. Reg. No.:	25-046977
Capital Investment / Paid-up Capital :	Rs. 34.500 Millions
CIN No.: [Company Identification No.]	U29297PN1988PLC046977
PAN No.: [Permanent Account No.]	AAACS7876D
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Manufacturer of Engineering Products.
No. of Employees :	500 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (51)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 3500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established company having a good track record. The latest financial is missing from the government department. As per previous year’s record, there appears slight fall in the profitability. However, general financial position of the company appears to be good. Liquidity position of the company appears to be strong. Company gets good support from its group companies. Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered/ Corporate Office :	Gat No. 304, At Kondhapuri, Taluka Shirpur, Kondhapuri, District Pune – 412209 Maharashtra, India
Tel. No.:	91-2137-304000 / 304802
Fax No.:	91-2137-304111 / 222/ 304319
E-Mail :	sudhir.kadam@sulzer.com sales.baroda@sulzer.com sales.delhi@sulzer.com sales.chennai@suzer.com shrikrishna.korde@sulzer.com fabrice.Billard@sulzer.com
Website :	http://www.sulzerindia.com
Location :	Owned
Corporate Office :	Sulzer House, Baner Road, Aundh, Pune – 411007, Maharashtra, India
Tel. No.:	91-20-30216300
Fax No.:	91-20-30216306/ 07
E-Mail :	info@sulzer.com
Factory 2 :	Village Kondhapuri, Pune Ahmednagar Road, Taluka Shirur, District Pune – 412209, Maharashtra, India
Tel No.:	91-2137-304000
Fax No.:	91-2137-304111/ 222
Regional Offices 1 :	Offtel Towers, ‘Z’ Floor, R.C. Dutt Road, Alkapuri Boroda - 390007, Gujarat, India
Tel. No.:	91-265-2342194
Fax No.:	91-265-2342394
Regional Offices 2 :	1015-1019, Ansal Tower, 38 Nehru Place, New Delhi-110019, India
Tel. No.:	91-11-26294771 / 2
Fax No.:	91-1126294226
Regional Offices 3 :	20 Bishop Wallers Avenue (West) C.I. T. Colony, Mylapore, Chennai – 600004, Tamilnadu, India
Tel. No.:	91-44-24992436 / 24987415
Fax No.:	91-44-24992394
Regional Offices :	Also located at: · Chennai · Delhi · Vadodara

DIRECTORS

AS ON 31.08.2012

Name :

Mr. Mallik Jambunathan

Designation :

Director

Address :

E-3/14, Shirine Gardens, Parihar Chowk, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

01.09.1960

Date of Appointment :

29.08.2011

DIN No.:

00199389

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29297PN1988PLC046977	SULZER INDIA LIMITED	Director	29/08/2011	06/02/2011	Active	NO

Name :

Mr. Venkatasubramanian Narayanaswami Ramanathan

Designation :

Director

Address :

603, Opal Powai Vihar, Powai, Mumbai – 400076, Maharashtra, India

Date of Birth/Age :

17.02.1961

Date of Appointment :

29.08.2011

DIN No.:

02740746

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U99999MH1974PLC017561	SULZER PUMPS INDIA LIMITED	Managing director	01/08/2012	01/08/2009	Active	NO
2	U29297PN1988PLC046977	SULZER INDIA LIMITED	Director	29/08/2011	06/02/2011	Active	NO

Name :

Mr. Narasimharao Subrahmanya Venkata Rallabhandi

Designation :

Director

Address :

Flat 2A Sayali Garden, Wireless Colony, Aundh, Pune – 411007, Maharashtra, India

Date of Birth/Age :

07.07.1962

Date of Appointment :

29.08.2011

DIN No.:

00122631

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29120PN2004PTC019442	BURCKHARDT COMPRESSION (INDIA) PRIVATE LIMITED	Managing director	25/06/2004	25/06/2004	Active	NO
2	U29297PN1988PLC046977	SULZER INDIA LIMITED	Director	29/08/2011	06/02/2011	Active	NO

Name :

Fabrice Jean Philippe Billard

Designation :

Director

Address :

Witikonerstrasse 380, 8053 Zurich, Switzerland

Date of Birth/Age :

11.03.1970

Date of Appointment :

31.08.2012

DIN No.:

06360664

Other Directorship :

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Company/ LLP Status	Defaulting status
1	U29297PN1988PLC046977	SULZER INDIA LIMITED	Director	31/08/2012	02/07/2012	Active	NO

KEY EXECUTIVES

Name :	Mr. Balaji Thiruvadanthi Bakthisaran
Designation :	Manager
Address :	D/30, Mantri Kishor Park, Bhosale Nagar, Pune – 411007, Maharashtra, India
Date of Birth/Age :	22.05.1960
Date of Appointment :	08.04.2008
PAN No.:	ADGPB8164M
Name :	Mr. Shrikrishna Chitaman Korde
Designation :	Secretary
Address :	4-A1, Madhuwanti Society, Near Karve Statue, Kothrud, Pune – 411038, Maharashtra, India
Date of Birth/Age :	15.05.1976
Date of Appointment :	01.04.2011
PAN No.:	ANQPK9577R

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.08.2012

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 31.08.2012

Equity Share Breakup	Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	96.27
Bodies corporate	0.19
Other top fifty shareholders	1.05
Others	2.49
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Engineering Products.

Products :

Products Description	Item Code No.
Petroleum Refining and Distillation equipments	841940.01

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Actual Production
Separation Columns and Packing for Distillation, Absorption and Desorption	M3	1000	15214
Mixing Process Equipment	No.	300	28

NOTES

· The above particulars are as certified by the Management.

· The Licensed Capacities are as per the Letter/ Acknowledgements received from the Ministry of Industry, Department of Industrial Development, Secretariat for Industrial Approvals, New Delhi for registration of Industrial Undertaking for manufacture of De-licensed articles.

· Installed Capacities cannot be quantified in view of common manufacturing facilities for the Company's wide product mix. The Company has made an application in 1989 to the Government of India, Department of Company Affairs, Company Law Board, New Delhi for the exemption under Section 211(4) of the Companies Act, 1956 from disclosure of Installed Capacities, for which approval is awaited.

* Note : Includes Sales Value of Rs.101.895 millions (Quantity 2,185 M3) for Jobwork charges. Raw material is imported from Sulzer Chemtech Limited, Switzerland and is the property of Sulzer Chemtech Limited, Switzerland.

GENERAL INFORMATION

No. of Employees :

500 (Approximately)

Bankers :

Ø Banque Indosuez, Ramon House, 169, Backbay Reclamation, Bombay – 400020, Maharashtra, India

Ø The Industrial Credit and Investment Corporation India Limited, 163, Backbay Reclamation, Mumbai – 400020, Maharashtra, India

Ø Janaseva Sahakari Bank

Ø State Bank of India

Ø Citibank N.A

Ø BNP Paribas

Ø Deutsche Bank

Facilities :

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Foreign currency loans banks unsecured	100.030	0.000
Total	100.030	0.000

NOTE:

On Packing Credit Foreign Currency Accounts (Repayable within one year) (Covered by Corporate Guarantee given by Sulzer Limited, Switzerland)

Banking Relations :	--
Auditors :
Name :	Price Waterhouse and Company Chartered Accountants
Address :	Mutha Towers, 5^th Floor, Suite No. 8, Airport Road, Yerwada, Pune – 411006, Maharashtra, India
Income-tax PAN of auditor or auditor's firm :	AADFP9359C
Holding Company :	Sulzer Limited, Switzerland
Subsidiary Company :	Sulzer Chemtech Tower Field Services (India) Private Limited (formerly SAB Technical Services India Private Limited) w.e.f. July 31, 2009
Fellow Subsidiaries :	· Sulzer Chemtech Company Limited, Thailand · Sulzer Chemtech Pte. Limited, Singapore · Sulzer Chemtech Limited, Switzerland · Sulzer Shanghai Engineering and Machinery Works Limited, China · Sulzer Chemtech, USA · Sulzer Pumps India Limited, India · Sulzer Chemtech GmbH, Germany · Sulzer Management Limited, Switzerland · Sulzer Chemtech Polaska, Poland · Sulzer Chemtech Limited, UK · Sulzer Chemtech Middle East S.P.C. · Sulzer Turbo Services Venlo B V · Sulzer Metco India Private Limited., India · Sulzer Chemtech Canada Inc.

CAPITAL STRUCTURE

AS ON 31.03.2012

Authorised Capital :

No. of Shares	Type	Value	Amount
5,000,000	Equity Shares	Rs. 10/- each	Rs. 50.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3,450,000	Equity Shares	Rs. 10/- each	Rs. 34.500 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
SHAREHOLDERS FUNDS
1] Share Capital		34.500	34.500	34.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		851.844	781.058	546.429
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		886.344	815.558	580.929
LOAN FUNDS
1] Secured Loans		0.000	0.000	0.000
2] Unsecured Loans		100.030	0.000	0.000
TOTAL BORROWING		100.030	0.000	0.000
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		986.374	815.558	580.929
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		382.794	155.613	190.945
Capital work-in-progress		4.139	149.409	1.382
INVESTMENT		129.826	129.826	0.000
DEFERREX TAX ASSETS		36.994	27.913	41.130
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	423.140	224.955	351.625
	Sundry Debtors	272.313	197.343	197.298
	Cash & Bank Balances	96.963	345.886	545.459
	Other Current Assets	5.232	2.233	5.423
	Loans & Advances	236.728	44.947	75.061
Total Current Assets		1034.376	815.364	1174.866
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	265.324	165.380	226.228
	Other Current Liabilities	255.166	83.539	299.021
	Provisions	81.265	213.648	302.145
Total Current Liabilities		601.755	462.567	827.394
Net Current Assets		432.621	352.797	347.472
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		986.374	815.558	580.929

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
	SALES
		Operating revenue. Net	1618.214	1490.479	1974.405
		Other Income	144.205	155.667	96.291
		TOTAL (A)	1762.419	1646.146	2070.696
Less	EXPENSES
		Consumption materials changes inventories	847.503	737.302	1129.205
		Employee related expenses	211.334	131.423	126.255
		Manufacturing service costs	110.741	66.193	326.155
		Administrative other operating expenses	372.000	208.406
		TOTAL (B)	1541.578	1143.324	1581.615
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		220.841	502.822	489.081
Less	INTEREST FINANCIAL CHARGES (D)		3.048	0.704	11.191
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		217.793	502.118	477.890
Less/ Add	DEPRECIATION/ AMORTISATION (F)		102.964	49.689	54.173
	PROFIT BEFORE TAX (E-F) (G)		114.829	452.429	423.717
Less	TAX (H)		44.043	157.454	153.606
	PROFIT AFTER TAX (G-H) (I)		70.786	294.975	270.111
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		475.214	270.083	168.253
Less	APPROPRIATIONS
		Transfer to General Reserve	0.000	29.498	27.011
		Dividend	0.000	0.000	34.500
		Tax on Dividend	0.000	0.000	5.863
		Proposed Final Dividend	0.000	51.750	86.250
		Provision for Tax on Proposed Final Dividend	0.000	8.596	14.658
	BALANCE CARRIED TO THE B/S		546.000	475.214	270.083
	EARNINGS IN FOREIGN CURRENCY
		Export on FOB basis	359.563	777.990	906.959
		Commission	1.111	1.149	0.797
		Service Charges and Others	105.378	5.993	25.361
	TOTAL EARNINGS		466.052	785.132	933.117
	IMPORTS
		Raw Materials	334.267	78.595	591.254
		Components and Spare Parts	33.724	47.455	35.661
		Capital Goods	81.640	26.029	37.181
	TOTAL IMPORTS		449.631	152.079	664.096
	Earnings Per Share (Rs.)		20.52	85.50	78.29

KEY RATIOS

PARTICULARS		31.03.2011 [15 Months]	31.12.2009 [12 Months]	31.12.2008
PAT / Total Income	(%)	4.02	17.92	13.04
Net Profit Margin (PBT/Sales)	(%)	7.10	30.35	21.46
Return on Total Assets (PBT/Total Assets}	(%)	8.10	46.60	31.02
Return on Investment (ROI) (PBT/Networth)		0.13	0.55	0.73
Debt Equity Ratio (Total Liability/Networth)		0.79	0.57	1.42
Current Ratio (Current Asset/Current Liability)		1.72	1.76	1.42

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

OPERATIONS

The overall adverse business climate affected the company and the total income of the Company for fifteen months registered a growth of 9% over previous twelve months. While the local market conditions were stable, the export market dropped significantly due to continuing difficult market conditions overseas. Falling sales volumes, depletion of margins due to competitive price bids, volatile material prices and implementation cost related to ERP system, i.e. SAP, led to decreased profitability for the given financial period. The Company has initiated program to add some more products to its portfolio and also Lean management system which is expected to improve operational excellence to ensure efficient and reliable processes. The Company has successfully implemented SAP global template on June 01, 2011 with due modifications to suit local operations including legal and taxation framework as a part of Sulzer Chemtech global business applications and IT roadmap. This will help the Company in adopting global businesses processes and ultimately would improve their efficiencies in all operating areas leading towards operational excellence.

FUTURE OUTLOOK

Demand in hydrocarbon industry stabilized internationally and some large projects are already in pipe line. The hydrocarbon processing industry is projected to recover further although at a slow pace. While the Indian market is showing signs of recovery with an overall upbeat market mode, the big projects, however, are expected to come up only by end of year 2011. The order book of the Company stands at Rs.1126.200 Millions of March 31, 2011.

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

Particulars	As on 31.03.2011 Rs. in millions
Claims against the Company not acknowledged as debts (excluding interest)	40.470
Income-tax matters in appeal	36.559
Excise Duty matters in appeal	1.140
Sales Tax matters in appeal	49.275
Service Tax matters in appeal	0.352

The timing and amount of ultimate liability and cash flows, if any, that may arise from the above matters, will be determined on settlement of the cases

FIXED ASSETS:

· Land

· Buildings (Freehold)

· Buildings (Leasehold)

· Plant and Machinery

· Data Processing Equipments

· Research and Development Equipments

· Furniture and Fittings

· Office and Other Equipment

· Vehicles

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.83
UK Pound	1	Rs. 89.23
Euro	1	Rs. 72.48

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	5
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	6
FINANCIAL CONDITION		0
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		51

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.